RCL Earnings Call 5/20/20

[kwokpot]

I'm listening to the Earnings call for RCCL. I started over 30 minutes late, so missed alot.

 

Anyway an analyst asked about once you start-up cruising again what will happen in the event a passenger does contract Covid-19? They would not answer the question and said it was premature to discuss those plans. They said they will be fully transparent with their plans once they are closer to restarting sailings.

 

They also just said that there will most definitely be an acceleration of ships leaving the fleet and that FUTURE new builds will be PERMANENTLY affected- there is NO WAY to Catch Up on newbuilds.

 

Oh Breakeven load factors is low anywhere from 30 -50%. For newer ships it's 30% due to scales of efficiency, more fuel efficient, more cabin types.

 

 

I will add more as I here. Others can do the same.

Edited May 20, 2020 by kwokpot

[kwokpot]

The next round of cancellations up to July 31st will be coming.

[PatMunits]

Has anyone asked yet whether quarterly fully reflects the fact that they have tons of unprocessed credits yet to be issued to customers? Have they already added to their books the bonus credit that they promised to customers? That's an extra liability they have to account for. 

Edited May 20, 2020 by PatMunits

[PatMunits]

Do analysts like the new bonds being issued by RCL? Was it presented as a win or a concern because of the relatively high cost of borrowing (10.875% & 11.5%)? 

[Cutigerlady]

Thought it was interesting that 45% are taking refunds, 55% FCC.  Millennials are asking for refunds, families (assume he meant Gen Xers) and Baby Boomers more likely to take the credit. Also mentioned that certain nationalities have higher propensity for refunds.

 

Certainly doesn't sound like anything will start much before the 4th quarter.  They don't want to begin sailings until their 4 pillar strategy can be implemented and that is still being worked out.  Sounds like China will be first to resume, then maybe limited sailings in US to Coco Cay.  Probably will use larger ships or amped ships which better support appropriate social distancing requirements.  

 

Analysts didn't seem thrilled that they are not seeking out more debt opportunities like competitors.  

 

Bookings for Q4 and 2021 are up, especially among loyalty guests.  I'm sure L&S is the thing driving that!  Doesn't sound like they are rushing to cut prices to fill ships.